CityLab Daily: NYC’s Pizza Principle No Longer Holds True

Part economic law and part urban legend, the pizza principle states that a slice of cheese pizza will always be the same price as a New York City subway ride. The theory has largely held true since it was first proposed in 1980. But, inflation is threatening to render the principle irrelevant as the average price of plain slices soars above $3, while a subway ticket remains frozen at $2.75.

The rising costs of utilities, flour and labor have put growing pressure on parlors in the “pizza mecca” to raise prices, Amelia Pollard reports. Some pizzerias have managed to keep their cheese slices at $2.75, but loyal customers can expect a price hike at those places, too. Today on CityLab: Pizza Prices Surpass Subway Fares, Upending Decades of NYC Economics.